Value of entrepreneurship to emerging economies Assignment

Value of entrepreneurship to emerging economies - Assignment Example A very unique feature and characteristic of the global market, a perfect reflection of which could be paralleled to the structure of any country is that it is made up people from different socio-economic backgrounds, each of which plays a contributory role towards the collective success of the market. As far as emerging markets are concerned, they can be compared to those players on the market who trade in not so huge forms of business, but yet, having the little contributions they bring on the market, significant enough to be counted as part of collective growth and development (Sandee, Isdijoso and Sulandjari, 2002). But for the roles and contributions of these emerging markets to be felt in a perfect sense, there are some key inputs that must be present. One of these is the contributory roles that entrepreneurship plays in the emerging markets (Acs and Szerb, 2007). Generally, an emerging market may be described as a country that has social and economic activity climate that is se t on the lines of rapid growth and development (Liedholm, 2002). Because entrepreneurs have a common goal of investing in markets, their contributions to these markets have been studied in several works of literature. In this paper, five major points that make a case for the value of entrepreneurship in Brazil as an emerging market are discussed. Increased Competitive Pressure In Brazil, the political environment allows that there can be as many entrepreneurship openings as possible. With such policy, the private sector, most of which have been controlled by entrepreneurship have had so much grounds to operate. Currently, there are several entrepreneurial based companies and businesses operating in the country. Generally, the size and economic worth of these entrepreneurial businesses are not seen to be as huge as those that are presented by multinational and international companies (Valliere and Peterson, 2009). However, because the entrepreneurial businesses have their own market and client base, it has always been important for them to engage in increased competitive marketing to ensure their survival. Economically, as these increased competitive pressures take place, entrepreneurs are forced to be rigorous on the emerging market, injecting capital into their businesses. On a larger scale, the fact that these enterprises are competitive enough and have higher asset base, revenues, capital, and manpower base, they contribute to the collective expansion and growth of the emerging markets in which they find themselves (Sandee, Isdijoso and Sulandjari, 2002). In Brazil, there are multinational companies that started merely as enterprises but due to the competition that they received from other enterprises and the need for them to be proactive in their growth; they have today become key stakeholders in that emerging market. Exploitation of Innovation Valliere and Peterson (2009) note that most entrepreneurial based companies and businesses in emerging markets ar e forced to engage in the exploitation of innovation because that is the only way by which they can be competitive against traditional multinational companies. Through the exploitation of innovation, these enterprises have critically gone into research and development to understudy marketing trends and principles that works best with the local markets in which they operate (Williams, 2009). Part of the exploitation of innovation has also included the need to use highly skilled and talented human resource within the corridors of the markets in which they find themselves to growth their business. Invariably, entrepreneurship has been valuable in ensuring that the emerging markets as a collective entity, rather than their enterprises alone are borne on the wings of innovative business. As it will be noted a major characteristic of developed markets is the abundance of innovation (Valliere and Pet